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Sign up to E-NewsPress release
7 October 2004
Ministers challenged on backing for oil company
£3m support for company under spotlight for human rights abuses
Leading groups campaigning on human rights, development and the environment today (Thursday 7 October) called on the Scottish Executive to explain why it gave £3 million of taxpayers money to an oil company that is the subject of a $2 billion court action over human rights abuses in Sudan.
In a joint letter (signed by Amnesty International Scotland, Friends of the Earth Scotland, the World Development Movement Scotland, and the Centre for Human Ecology) sent to First Minister, Jack McConnell, and the Finance minister, Tom McCabe, the groups claim the decision to fund an offshore windfarm project being developed by Talisman Energy reveals serious shortcomings in the Executive's screening process.
Commenting Duncan McLaren, Chief Executive of Friends of the Earth, said: "This case illustrates why its so important that the Executive carefully screens companies that seek public support. Sudanese villagers evicted from their land must have been appalled to hear that the Scottish Executive was giving public money to Talisman. And if these allegations are proven and billions of dollars in damages awarded, the Executive's failure to screen out such a risky partner could jeopardise the overall viability of the Beatrice project. Ironically such projects could otherwise help us move away from dependence on fossil fuels - and reduce the incentives for the sort of behaviour that Talisman is alleged to have supported in Sudan."
A copy of the letter now follows:
Dear Mr McConnell
TALISMAN ENERGY, HUMAN RIGHTS ABUSES AND PUBLIC CONTRACTS
Several Scottish organisations, including Amnesty International, Friends of the Earth Scotland, World Development Movement Scotland, the Centre for Human Ecology are concerned that the Scottish Executive is failing in its duty to examine the human rights record of project funding partner companies.
Talisman Energy UK is a subsidiary of the Canadian company Talisman Energy which is being sued for an amount in the order of $2bn by the Presbyterian Church of Sudan who claim that tribesmen and women were forced from their homes in and around Talisman oil fields. Talisman Energy UK was recently awarded joint Scottish Executive and Westminster funding totalling £6 million to develop an offshore wind farm in the Beatrice field, together with Scottish & Southern Energy. The court case could generate significant financial and reputational risks for Talisman¹s current projects. It therefore raises some serious questions for the Executive:
What due diligence processes were applied to this proposal? In particular, what procedures were undertaken in deciding to support this project to assess the social, environmental and ethical performance and standards of the project partners? What risks and past activities were the project partners required to disclose and in what form? What contractual safeguards were used to protect the Executive¹s investment? Was the Executive aware of this pending legal action, which could jeopardise the ability of Talisman to deliver on the Beatrice project?
We believe that the Executive needs to develop scrutiny procedures and adopt standards for such contracts that avoid such risk in future. These could include requiring independently verified social and environmental reporting, and screening out companies that have legal cases pending, or have been identified as in breach of OECD Guidelines for multinational enterprises.
We respectfully request a meeting to discuss the current procedures, and any proposals you may have in the light of this example - for improvements in the screening of companies in receipt of public money in the form of subsidies, procurement contracts and any other significant public contract.
Yours sincerely
Duncan McLaren, Friends of the Earth Scotland
Rosemary Burnett, Amnesty International
Kirstie Shirra , World Development Movement
Osbert Lancaster, Centre for Human Ecology
ENDS
Notes for editors
1) Original story: Energy firm in court over ethnic cleansing in Sudan, The Herald.
2) The Court action is being handled by law firm Berger & Montague. A case summary is available, together with more details on the complaint including eye witness accounts.
3) On 26 August 2004 The Scottish Executive gave £3 million, which was matched by £3 million from the Department of Trade and Industry (DTI) to Talisman and Scottish and Southern Energy to develop an offshore wind farm. See Scottish Executive press release.
Or contact Talisman Energy (UL) Ltd, Talisman House, 163 Holborn Street, Aberdeen AB10 6BZ Tel: 01224 413200.
Contacts
Lang Banks on 0131 554 9977 or (pager) 07654 200937.
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